Tyson Foods Lowers Fiscal 2026 Profit Forecast Due to Beef Segment Losses
Tyson Foods has revised its fiscal 2026 adjusted operating income forecast downward, citing worsening losses in its beef segment. The company now anticipates full-year adjusted operating income of $2.1 billion to $2.3 billion, down from a previous range of $2.2 billion to $2.4 billion. Beef operations are expected to post an adjusted loss of $500 million to $650 million for the year, up sharply from its earlier forecast. The decline is attributed to tight U.S. cattle supplies and elevated livestock costs driven by a prolonged drought that has reduced the national herd size significantly over recent years. Compounding this issue was the government's decision more than a year ago to halt beef imports from Mexico due to concerns about New World screwworm, further straining domestic supply. In contrast, Tyson’s chicken segment continues to perform well with seven consecutive quarters of growth and an adjusted operating income increase in Q3. The company expects overall revenue growth for fiscal 2026 between 2.5% and 3.5%, along with free cash flow ranging from $1.3 billion to $1.7 billion.
Tickers: $TSN
Topics: adjusted operating income forecast beef segment losses cattle supply issues